The IRS sends formal letters it calls notices to taxpayers to request a specific action or simply inform them about different actions. Understanding what Notice 1444 is shouldn’t be as difficult as understanding the implications of other IRS notices.
The IRS sent this notice to taxpayers who received economic impact payments during the Coronavirus pandemic. This government program was halted, but you can still claim the recovery rebate credit if you didn’t file tax returns for the last few years.
Let’s take a closer look at IRS Notice 1444 and what you need to do if you receive a similar letter from the IRS.
Table of Contents
What is Economic Impact Payment?
The term economic impact payment refers to relief payments the IRS issued during the Coronavirus pandemic. The first stimulus payment was issued in April 2020, followed by two more payments in December 2020 and March 2021.
The IRS hasn’t issued more economic impact payments since then. It’s evident that the federal government doesn’t intend to continue giving these financial relief payments.
However, taxpayers who haven’t filed their 2020 and 2021 tax returns can claim recovery rebate credits. The deadline for the first payment is May 17, 2024, while the filing deadline for the remaining two payments is April 18, 2025.
The IRS sends Notice 1444 to all taxpayers who received or were eligible to receive economic impact payments. Hence, this letter brings good news, and you shouldn’t be concerned about its implications.
Is Recovery Rebate Credit Still Available?
The Coronavirus Aid, Relief, and Economic Security Act was passed on March 27, 2020, only a few weeks after the onset of the pandemic.
The IRS released the first and second stimulus check payments under the CARES Act, while the final third payment was approved under the American Rescue Plan Act of 2021.
The fourth payment was considered within the Build Back Better Plan approved by President Biden, but ultimately the plan excluded further stimulus checks.
Consequently, eligible taxpayers who already filed their 2020 and 2021 tax returns can’t claim Recovery Rebate Credit on their 2022 return.
It’s safe to assume that the federal government doesn’t plan to resume Coronavirus relief programs because the World Health Organization no longer considers the Coronavirus a public health emergency.
Recovery Rebate Credit will likely remain unavailable going forward, so you can only claim it retroactively by filing a return for 2020 or 2021. All US citizens or residents with valid social security numbers are eligible for this credit.
However, the maximum amount you can receive depends on your annual income and the number of children you have.
The Purpose of IRS Notice 1444
The IRS sent Notice 1444 two weeks after releasing the first of three economic impact payments.
The notice usually contains information regarding the paid amount, payment method, a contact number a taxpayer can use if they experience any issues, and a reminder to keep the notice for financial records.
- Notice 1444, Your Economic Impact Payment: Taxpayers got this letter from the IRS approximately 15 days after receiving their first stimulus check. You’re not required to contact the IRS or send additional documents to the IRS after receiving this notice. So, you should only consider contacting the IRS if you got Notice 1444 but didn’t receive the payment.
- Notice 1444-A, You May Need to Act to Claim Your Payment: Taxpayers who don’t have to file tax returns received Notice 1444-A from the IRS informing them about the steps they need to take to claim their payment. Non-filers were prompted to use the online tool that was available on the IRS website to get their economic impact payments.
- Notice 1444-B, Your Second Economic Impact Payment: This information on this notice is similar to the information on the first version of Notice 1444. Most taxpayers got Notice 1444-B a few weeks after receiving the second stimulus check.
- Notice 1444-C, Your 2021 Economic Impact Payment: The IRS mailed this letter to all taxpayers who received the final installment of the economic impact payment. Its purpose is only to inform you that the payment was released, so there’s nothing you should do after receiving this letter. Notice 1444-C includes a telephone number you should call if the payment hasn’t reached you for whatever reason.
You should keep each version of Notice 1444 you get because the IRS cannot provide a copy of the original notice.
A Brief Guide to Interpreting IRS Notices
The IRS uses 75 notices to inform taxpayers about different tax issues, and the correct interpretation of an IRS notice depends on its contents.
So, if the letter contains a request for a particular document, you must mail that document to the included address. Sometimes, the purpose of a notice is purely informative, and you’re not required to act.
For instance, if you receive Notice CP05, you’ll have to wait until the IRS completes the additional review of your return. You’ll get Notice CP05A if the IRS needs a particular document from you.
IRS notices contain enough information so taxpayers can understand why they received the letter and what is required. However, you should contact a tax professional if you don’t understand the notice the IRS sent you or which course of action you should take.
Responding to an IRS Notice
You’ll have thirty days to respond to an IRS notice that requests additional documents or some other action from you. Make copies of all documents you send to the IRS so that you can prove that you paid the requested amount or dispute a certain decision.
You should only contact the IRS if the notice specifically states that you should do so. Some notices clearly state that you don’t have to do anything at this time, which is why contacting the IRS is often unnecessary.
You can appeal the decision if you receive a Notice of Deficiency, a Notice of Levy and Your Right to a Hearing, or some other notice from the IRS informing you that you must pay a penalty.
You’ll have to provide the IRS officer in charge of your case with the documentation that supports your claim before filing Form 12203, Request for Appeals Review, and initiating the appeal process.
Frequently Asked Questions
Chances are you won’t have to do anything if you incorrectly calculated the Recovery Rebate Credit amount on line 30 of Form 1040 because the IRS will correct the mistake, notify you they’ve made the adjustment, and resume processing your return.
However, a math error might temporarily put the processing of your return on hold and delay your refund.
Taxpayers who didn’t claim recovery rebate credits on 2020 and 2021 returns must file an amended return if they want to receive this tax credit.
The IRS stopped sending Notice 1444 to taxpayers after issuing the third and final stimulus payment.
Taxpayers who didn’t get Notice 1444 from the IRS can check their stimulus check payment details on their IRS accounts by requesting the tax transcript for 2020 or 2021 from the Tax Records tab.
The Importance of Interpreting IRS Notices Correctly
Notices from the IRS often contain important information that can affect your tax debt. Ignoring a notice can have far-reaching consequences as you may be assessed different fines and penalties, or the IRS might disallow a part or your entire refund.
Some letters, like Notice 1444, don’t require you to act, as their purpose is to verify a particular action or inform you that the IRS has taken action. In this case, a release of the economic impact payment.
Only one version of this notice requires a taxpayer to act, while all other versions are informative. It’s necessary to read a notice you get from the IRS so that you can understand what you must do.
Don’t hesitate to contact a tax professional if you don’t understand Notice 1444 or any other notice the IRS sends you.
Author:
Logan is a practicing CPA and founder of Choice Tax Relief and Money Done Right. After spending nearly a decade in the corporate world helping big businesses save money, he launched his blog with the goal of helping everyday Americans earn, save, and invest more money. Learn more about Logan.
